Morningstar Rating

Stock Research and Analysis

by Adam Fleck, CFA

Bulls Say

Craft beer is one area of the beer market where volumes are expanding, and Blue Moon is one of the largest craft brews in the U.S. with significant international expansion potential.
The firm is attempting to capture new markets by innovating products like the Redd’s fruit ale franchise, which is attempting to win women and spirits drinkers to Molson Coors.
Beer pricing has been largely rational despite increased competition; the firm has grown its top line in recent years based on pricing even with volumes falling. Read more 

Bears Say

Molson Coors has seen volumes decline recently as its largest markets have faced a secular shift away from beer to more wine and spirit consumption.
Craft brew consumption has been growing strongly in the U.S., suggesting customers are trading up and away from TAP’s larger value and premium brands.
The number of craft breweries has expanded materially in recent years, suggesting increased competition going forward for the firm’s growing craft portfolio. Read more 

Management

We believe Molson Coors' management team has been standard stewards of shareholders capital. Management has made some wise strategic decisions, such as the MillerCoors JV. However, it has also made some significant missteps such as the Kaiser acquisition   Read more 

Profile

Molson Coors is a large global brewer. Major brands include Coors Light, Molson Canadian, Staropramen, Carling, Miller Lite, Keystone, Blue Moon, and Leinenkugel. The firm's   Read more 

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